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ONEOK Inc  (NYSE:OKE) E10: $1.67 (As of Sep. 2017)

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

ONEOK Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was $0.430. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $1.67 for the trailing ten years ended in Sep. 2017.

As of today, ONEOK Inc's current stock price is $59.41. ONEOK Inc's E10 for the quarter that ended in Sep. 2017 was $1.67. ONEOK Inc's Shiller PE Ratio of today is 35.57.

During the past 13 years, the highest Shiller PE Ratio of ONEOK Inc was 39.41. The lowest was 7.09. And the median was 22.49.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

ONEOK Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.63 1.75 1.77 1.59 1.63

ONEOK Inc Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
E10 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.62 1.63 1.60 1.62 1.67

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today’s price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

For example, ONEOK Inc's adjusted earnings per share data for the three months ended in Sep. 2017 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Sep. 2017 (Change)*Current CPI (Sep. 2017)
=0.43/246.819*246.819
=0.430

Current CPI (Sep. 2017) = 246.819.

ONEOK Inc Quarterly Data

per share eps CPI Adj_EPS
200712 0.480 210.036 0.564
200803 0.680 213.528 0.786
200806 0.195 218.815 0.220
200809 0.275 218.783 0.310
200812 0.325 210.228 0.382
200903 0.580 212.709 0.673
200906 0.195 215.693 0.223
200909 0.225 215.969 0.257
200912 0.435 215.949 0.497
201003 0.720 217.631 0.817
201006 0.195 217.965 0.221
201009 0.255 218.439 0.288
201012 0.380 219.179 0.428
201103 0.595 223.467 0.657
201106 0.250 225.722 0.273
201109 0.280 226.889 0.305
201112 0.540 225.672 0.591
201203 0.580 229.392 0.624
201206 0.290 229.478 0.312
201209 0.310 231.407 0.331
201212 0.530 229.601 0.570
201303 0.540 232.773 0.573
201306 0.000 233.504 0.000
201309 0.300 234.149 0.316
201312 0.430 233.049 0.455
201403 0.450 236.293 0.470
201406 0.290 238.343 0.300
201409 0.310 238.031 0.321
201412 0.450 234.812 0.473
201503 0.290 236.119 0.303
201506 0.360 238.638 0.372
201509 0.390 237.945 0.405
201512 0.120 236.525 0.125
201603 0.400 238.132 0.415
201606 0.400 241.018 0.410
201609 0.430 241.428 0.440
201612 0.430 241.432 0.440
201703 0.410 243.801 0.415
201706 0.330 244.955 0.333
201709 0.430 246.819 0.430

Add all the adjusted EPS together and divide 10 will get our e10.


Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

ONEOK Inc's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=59.41/1.67
=35.57

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

During the past 13 years, the highest Shiller P/E Ratio of ONEOK Inc was 39.41. The lowest was 7.09. And the median was 22.49.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


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ONEOK Increases Quarterly Dividend
ONEOK Increases Quarterly Dividend

By PRNewswire about OKE 2018-01-17 15:32:44

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